As the excitement builds for the FIFA World Cup, set to kick off in Canada from June 12 to July 7, hosts in Vancouver and Toronto are facing an unexpected downturn in bookings. With millions of football fans anticipated to descend on these cities, many short-term rental hosts are grappling with an alarming lack of interest in their properties.
A Surprising Lack of Demand
May Chu, a seasoned Airbnb host from Vancouver, is among those perplexed by the current lack of reservations. Despite her guest suite’s previous success, she has not received a single booking for the World Cup period. “It’s incredibly strange how there are no bookings. Back in December, my pricing software was estimating $2,000 per night. Then, it keeps going down,” she explained. Historically, her property has been in high demand during June, but now, even at a competitive rate of £440 per night, her suite remains vacant.
In Toronto, hosts are experiencing similarly disappointing results. Shelby Lim, who owns a condo close to BC Place stadium, noted that while she has secured bookings leading up to the tournament, her property remains unreserved during the World Cup itself. “I was hoping to charge £1,000 to £1,500 a night, but I’m currently renting it for less than £500. I’ve invested in upgrades, and now I’m looking at significant losses,” she said.
Market Saturation and Local Regulations
Matthew Collins, a newcomer to the short-term rental market in Toronto’s Mimico neighbourhood, echoes these sentiments. He anticipated a rush for his one-bedroom apartment, located just steps from BMO Field, but has yet to attract interest since listing it three weeks ago. “I think the market’s just flooded,” he remarked, noting his frustration over the £390 municipal fee required for hosts to register with the city.
In response to the anticipated influx of visitors, Airbnb initiated a $1,000 incentive for hosts in World Cup cities. Since October 1, around 4,000 new listings have emerged in Vancouver and Toronto. However, Matt McNama, a spokesperson for Airbnb Canada, revealed that a significant portion of these listings—80 per cent in Toronto and 70 per cent in Vancouver—remains available, most priced under £500 a night.
Broader Implications for the Hospitality Sector
The challenges facing short-term rental hosts are mirrored in the hotel industry across both cities. Data from Destination Vancouver indicates hotel bookings are down 20 per cent compared to last June. CEO Royce Chwin remarked, “It is a little slower than expected, but we are starting to see a bit of a pickup.” However, this surge is nowhere near what was seen during the final concerts of Taylor Swift’s Eras Tour, where hotel prices soared.
For World Cup match days, downtown hotel rooms are averaging between £600 and £800, a stark difference from the exorbitant rates during Swift’s performances. Chwin suggested that many fans may not be inclined to stay in Vancouver for the tournament’s duration, opting instead to follow their teams across different host cities.
Sara Anghel, president of the Greater Toronto Hotel Association, confirmed that demand for accommodation during the World Cup has not met expectations. She attributed this to FIFA officials cancelling hotel bookings in the city, along with other events adjusting their schedules around the tournament.
A Long-Term Perspective
Andrew Weir, CEO of Destination Toronto, emphasised the importance of viewing the World Cup as a long-term opportunity for both cities. “FIFA hosting this event is just an enormous opportunity for our city,” he stated. While the immediate economic impact may be less than anticipated, the potential for long-term benefits remains significant.
Why it Matters
The unexpected decline in accommodation bookings during a major global event like the FIFA World Cup raises questions about market dynamics and consumer behaviour. As hosts grapple with unfilled properties and dwindling revenues, the situation underscores the complexities of the hospitality industry in the face of rising competition and fluctuating demand. This could serve as a cautionary tale for future events, highlighting the need for strategic planning and responsive marketing in the evolving landscape of short-term rentals and tourism.
